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Tuesday, January 6, 2015

Posted By Paul Joseph Watson On January 5, 2015 @
11:40 am In Featured Stories,Tile

As the price of oil drops below $50 for the first time since
2009, noted investor Jeffrey Gundlach warns that a fall to $40 dollars a barrel
could spark “terrifying” geopolitical consequences.

The February contract for West Texas Intermediate briefly
fell to a session low of $49.95 earlier today, while Brent crude also hit a
5-½-year low.

However, according to influential investor Gundlach, founder
of Doubleline Capital, a fall to $40 could set in motion devastating global
developments.

“Oil is incredibly important right now,” Gundlach said in a
recent interview with FuW. “If oil falls to around $40 a barrel then I think
the yield on ten year treasury note is going to 1%. I hope it does not go to
$40 because then something is very, very wrong with the world, not just the
economy. The geopolitical consequences could be – to put it bluntly –
terrifying.”

As Zero Hedge
points out, Gundlach is right to draw a correlation between unstable
price fluctuations in crude oil and geopolitical turmoil.

“Large and rapid rises and falls in the price of crude oil
have correlated oddly strongly with major geopolitical and economic crisis
across the globe. Whether driven by problems for oil exporters or oil
importers, the ‘difference this time’ is that, thanks to central bank largesse,
money flows faster than ever and everything is more tightly coupled with that
flow.”

The last time we saw anything like this activity in terms of
oil price, it turned out to be a precursor to the global financial collapse of
2008.

“A junk bond implosion is usually a signal that a major
stock market crash is on the way. So if you are looking for a “canary in the
coal mine”, keep your eye on the performance of energy junk bonds. If they
begin to collapse, that is a sign that all hell is about to break loose on Wall
Street,” writes
Michael Snyder.

As we have previously
documented, the sudden drop in the price of oil has much to do with
an engineered attack on the Russian economy and the Ruble which is being led by
Saudi Arabia and the Obama White House. The ultimate goal is to destabilize the
Russian government and foment a color revolution.

This agenda was summed up by Paul Stevens, a fellow for the
secretive Royal Institute of International Affairs based at Chatham House in
London.

“If the governments aren’t able to spend to keep the kids
off the streets they will go back to the streets, and we could start to see
political disruption and upheaval,” wrote Stevens.

The US and the Saudis have resolved to crash the price of
oil and with it Russia’s financial system despite the fact that this will also
cripple the European economy. Russia has
even proposed that the EU dump the TTIP free trade agreement
with the United States and instead join the newly established Eurasian Economic
Union.

“The U.S. and European sanctions against Russia will become
more severe and crippling in the face of drastically falling oil prices –
prices which are falling drastically because of the unprecedented boom of shale
gas fracking both domestically in the U.S. and abroad in Ukraine and other
locales,” writes Mac
Slavo. “The oil & gas giants like Chevron and Exxon Mobil have
created revolutionary conditions with now direct consequences on U.S. foreign
policy and global war for dominance.”